Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Printer Friendly Version
Today is the day that various changes to insolvency law come into force. Insolvency professionals will (hopefully) be aware of these changes and have taken steps to prepare for them, but just to be on the safe side, Frances Coulson at Moon Beever helpfully summarises the main changes.
Aspects of the Deregulation Act 2015 and the Small Business, Enterprise and Employment Act 2015— both of which became law on 26th March 2015—will take effect from 1st October 2015, as will some secondary legislation.
It will be important to keep making representations to the Insolvency Service and Parliament as to how these changes work (or don’t work) particularly in areas of great concern such as fee estimates, and compensation orders.
The Deregulation Act 2015 (which deals with a myriad of things from driving instructors to “sellers of knitting yarn”!) deals with companies and insolvency in three short sections at sections 17, 18 and 19 and schedule 6. Only section 17 is substantive. Section 18 deals with audit and section 19 merely refers to Schedule 6.
The main changes for 1st October are:
The Small Business, Enterprise and Employment Act 2015 is also very wide ranging. The main 1st October 2015 changes are:
Insolvency (Amendment) Rules 2015 changes from 1st October include the need for IPs to give fee estimates to creditors for time costs where they are used and for creditors to approve them and any increases. This may be problematic in investigation cases in particular.
The main 1st October changes under these statutory instruments are:
The Insolvency (Protection of Essential Supplies) Order 2015 also comes into effect on 1 October. The Order allows the Secretary of State to amend IA 1986, ss 233 and 372 to:
However such suppliers can then:
This is just the start of the changes so there will be a lot of settling in, but there are many more changes to come so it is all going to have a cost to the profession as well as creditors at least in the short term.
This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained here.
The views expressed by our Legal Analysis interviewees are not necessarily those of the proprietor.
Adapted from a blog post originally published on Moon Beever's website.
If you are a LexisPSL subscriber, click the link below for further information:
The Deregulation Act 2015
Small Business, Enterprise and Employment Act 2015—impact on insolvency
The need to be up-front with creditors on fees
The Insolvency (Protection of Essential Supplies) Order 2015—what is its effect?
Not a subscriber? Find out more about how LexisPSL can help you and click here for a free trial of LexisPSL Restructuring and Insolvency.
0330 161 1234